Great news if you borrowed $50,000 or less in PPP Loans!Articles
The federal government announced yesterday major changes to the current PPP loan forgiveness process for those who borrowed $50,000 or less in PPP loans. The borrowers can now use a simpler application, Form 3508S. The changes include:
- The new application doesn’t require borrowers to show how they calculated their loan forgiveness amount.
- It appears not to reduce the forgiveness amount by an Economic Injury Disaster Loan advance (EIDL) received of up to $10,000.
- The total amount eligible for forgiveness is not subject to a reduction if a recipient reduced the salaries or headcount of its employees.
These are not applicable to those who borrowed more than $50,000.
Compiled by Dao CPA PC Staff from SBA publications